eToros Professional Crypto Exchange Adds Institutional-Grade Product Suite, Launches Inverted Fee Model

Friday 5 July 2020, 5:54 PM AEST - 1 week ago

Offering includes advanced FIX API, cold storage custody solution, Credit Line, special order types, and brand new high-performance matching engine

July 23, 2020: eToro, the multi-asset platform with over 13 million registered users globally, has added several enhanced trading and risk management tools to its crypto exchange, eToroX. This new set of tools is targeted at the growing segment of professional and institutional crypto traders, which has a unique set of trading and commercial requirements.

Employing a unique and progressive inverted Taker-Maker fee model*, eToroX flips the traditional Maker-Taker pricing structure, by allowing a rebate to be paid to takers who execute market orders above certain volumes, rather than them paying for the privilege of trading. Research from the University of Melbourne examined the few traditional exchanges that adopted inverted fee models, and concluded that the net impact of those models on market quality is positive, showing price efficiency and an increase in liquidity with an inverted venue market share, with a decrease in short-term volatility.

As part of its focus on professional and institutional traders, and their requirements for better risk management tools, eToroX has added a range of new Order Types, to amplify user abilities in trading tokenized FX, commodities, and crypto 24×7, including FOK, IOC, GTC, and GTD, as well as special Iceberg orders. It has also established a highly secure cold storage custody solution, of the same high standard as those utilized by traditional financial houses. Further tools being introduced include an institutional-grade API with FIX protocol, in addition to REST and WebSocket protocols, and a credit line program** for spot trading, enabling users extended access to eToroXs deep liquidity markets, and allowing them to trade with up to ten times more volume.

According to Peggy Sullivan, Senior Policy Advisor at the U.S. Securities and Exchange Commission, to have more mainstream adoption of the cryptocurrency or the digital asset space, we need to make it easier for the institutional markets to enter. This is confirmed by a report from Aite Group, a global research, and advisory firm, which finds professional crypto traders to be in desperate need of institutional ...

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